Dolphins’ Cap Situation: Miami Taking on Record Dead Money After Jaylen Waddle Trade

Dolphins general manager Jon-Eric Sullivan and head coach Jeff Hafley are in the midst of rebuilding the team. | Sam Navarro-Imagn Images

In September of 2023, the Dolphins dominated the Broncos en route to a 70–20 victory.

In one of the highest-scoring performances by a team in NFL history, Miami utterly dismantled the Denver as Mike McDaniel’s offense had their every which way with the Broncos’ defense. Tua Tagovailoa threw more touchdowns than incompletions in the game, and the Dolphins were on their way to clinching their second straight postseason berth. Meanwhile, the struggling Broncos would go on to bench and eventually release Russell Wilson, taking on what was, at that time, the biggest dead cap hit in NFL history.

Oh, how the times have changed.

Less than three years after that fateful game, the Broncos acquired wide receiver Jaylen Waddle, and a fourth-round pick, from the Dolphins in exchange for first, third and fourth-round picks in this year’s draft. The Broncos are in win-now mode after making the AFC championship game—their second straight postseason appearance—and Waddle can help them realize their Super Bowl aspirations.

More: Jaylen Waddle Trade Grades: Broncos Pay Premium for Star Receiver

Meanwhile, the Dolphins are making the Wilson dead cap hit look like chump change. After firing McDaniel in January and hiring Jon-Eric Sullivan and Jeff Hafley, Miami is fully embracing the rebuild.

To start that process, the Dolphins are taking on the most dead cap money in NFL history. They’ve released numerous players on both sides of the ball and are taking on their salaries as they look to rebuild quickly and start a new era in South Beach.

So, how did we get here?

The fall of the Dolphins

Though the Dolphins had a great offensive mind in McDaniel and a number of talented players, they were unable to secure their first postseason win since the start of the millennium. They made poor contract decisions along the way, most notably including making Tagovailoa tied for the second-highest paid quarterback in NFL history. The Athletic’s Michael Silver reported last September that McDaniel was “too lenient” with star players including Jalen Ramsey and Tyreek Hill, They also got unlucky with injuries, particularly as Tagovailoa, Bradley Chubb and Jaelan Phillips all missed significant parts of the 2024 season.

The bottom line is that these factors contributed to the Dolphins not winning enough, and both the culture and the high-priced roster had to be torn apart for the team to move on and try to find success in the future.

What does the Dolphins cap situation look like?

With the Waddle trade, the Dolphins are now taking on more than $175 million in dead cap money this season. Here is a look at the money they will pay out for players no longer on the team, via Adam Schefter:

• Tua Tagovailoa: $99.2 million ($67.4 million in 2026)
• Jaylen Waddle: $26.3 million
• Tyreek Hill: $28.2 million
• Jalen Ramsey: $20.9 million
• Minkah Fitzpatrick: $13 million
• Bradley Chubb: $10.9 million
• Terron Armstead: $10.7 million
• James Daniels: $4.8 million
• Zach Wilson: $3.8 million
• Alec Ingold: $2 million
• Jonnu Smith: $1.7 million
• Nick Westbrook-Ikhine: $1.6 million
• Matthew Judon: $1.4 million
• Jason Sanders: $663,000
• Cam Smith: $528,000
• Mohamed Kamara: $160,000

Per Robert Mays of The Athletic, no player on the Dolphins will make more than $11.3 million against the cap in 2026, yet the Dolphins would be over the cap if the league year hadn’t started yet. They will shed plenty of cap space once they’re free of Tagovailoa’s dead cap hit, but for now, they have limited money to work with.

Where do the Dolphins go from here?

As the Dolphins rebuild their roster, they can look at how the Broncos handled their own rebuild. Despite taking on Wilson’s enormous dead cap hit, Denver made the playoffs the following season after drafting Bo Nix. Miami is expected to face a longer timeline to becoming postseason contenders, particularly since they’ve cut more talent, but they can look at the Broncos’ trajectory as a model of success.

The good news for the Dolphins is they do have a quarterback to build around. Even if Malik Willis turns out to be a bridge quarterback, Miami has a talented, young and affordable option offering promise as they step into a new era.

The biggest key for the Dolphins will be hitting on draft picks. While this is important for any team, it is especially so for the Dolphins as they have limited proven talent on the roster and don’t have much money to spend.

The Dolphins have 11 picks in this year’s draft—including two first-rounders—giving them a strong starting point to reload the roster.

---